-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by …-and-neck. All these results are consistent with the predictions of step-by-step innovation models …

There is little econometric study of how governments should procure innovation. One choice facing policymakers is …” approach). We exploit a natural experiment in the widely emulated Small Business Innovation Research (SBIR) program. From 2018 … commercial innovation measured by VC funding and patenting. By contrast, Conventional awards have no effects on these outcomes …

paper, we address this question by investigating how innovation responses to a substantial policy initiative increasing … product market competition interact with the strength of patent rights. We provide empirical evidence of innovation responding … with step-by-step innovation models predicting that product market competition enhances innovation and, more importantly …

innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 … tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers … and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow …

effect on innovation. We develop a simple "trapped factor" model of innovation that is consistent with these empirical …

Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development … grants. In this paper, we study how such financial incentives affect individuals' decisions to pursue careers in innovation … innovation are extremely skewed – with the top 1% of inventors collecting more than 22% of total inventors' income – and are …

misallocation of talents to innovation …

-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms …, which lowers the opportunity cost of innovation, generating an additional trapped factor effect. Starting from a baseline …